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Chapter Five: Utah Case Study Chapter Five UTAH CASE STUDY Christopher King, University of Texas at Austin Dan O’Shea, University of Texas at Austin Section I. Background Information and Issues When Utah became an early implementing state under the Workforce Investment Act (WIA) in July 1999, it was well positioned to do so. Utah has a long history of commitment to effective job training programs. Utah’s first comprehensive manpower efforts began 30 years ago when Utah applied for and secured a Comprehensive Manpower Pilot grant from the U.S. Department of Labor (U.S. DOL), becoming one of a handful of states and localities chosen to prepare the way for the comprehensive manpower block grants that followed. Utah participated as a "single-state" administrative entity over a number of substate planning regions that operated programs locally, an approach it followed under the Comprehensive Employment and Training Act (CETA) program from 1973 to 1982. From 1983 to 1998, Utah organized more along the lines of other states, with nine distinct Job Training Partnership Act (JTPA) service delivery areas, each of which was overseen by its own Private Industry Council (PIC). In 1998, Utah reverted to single- state status, which it continued under WIA, with eight regional workforce planning councils, two of which encompass two subregions.1 Services now are delivered in One- Stop Employment Centers in five Department of Workforce Services (DWS) regional workforce service areas, each of which has a designated Regional Council on Workforce Services. Regional councils create a venue for the input of local business, partner agencies, community-based organizations, and other stakeholders into the state workforce system. In addition to single-state status, Utah chose a unique path: in an era of increasing privatization, and, in a state that is very conservative and business-oriented, Utah opted to deliver workforce development and related services almost exclusively with state agency employees. The state had completely revamped its approach to workforce development and welfare service delivery in 1996 when it enacted House Bill 375, which created the Utah DWS, a consolidation of five former state agencies, and gave the new agency responsibility for major employment and training programs, as well as cash assistance, Food Stamp Employment and Training, child care, and other supportive services. 161 Business leaders, advocates, and key government officials all supported Utah’s workforce reforms. (Utah had also studied other states’ reforms, e.g., Michigan, Texas, carefully before crafting its own.) The reorganization reflects the state’s commitment to a seamless service delivery system that: • Integrates workforce and related support services to foster self-sufficiency for all residents; • Has a strong customer orientation, particularly towards meeting the employment and other needs of business and job seekers; and • Delivers services through a locally responsive network of One-Stop Employment Centers built on statewide administration and regional collaboration. House Bill 375 had emerged as a result of ongoing state efforts. A 1992 legislative audit report had found that employment and training services in Utah were “fragmented among 23 separate state and federal programs administered by six different state agencies.”2 Governor Mike Leavitt and Lieutenant Governor Olene Walker's 1996 Governor’s Task Force on Workforce Development report subsequently argued strongly for consolidation of workforce programs and agencies, seamless integration of workforce and related services, and strong state administration. Principles established for reform by the task force still guide Utah’s system today: • The workforce system must be customer-driven; • The system must measure results and be accountable throughout; • Program governance and operations must be simplified; • The system should be state-based with local input on design and delivery; • The system should have private sector leadership and direct involvement at all levels; • The system should be based on continuous improvement; • Education and training services provided under the system should be market- driven; and • Funding for workforce services should be commensurate with need. The major federal and state programs/funding streams within DWS currently are the Workforce Investment Act (WIA) programs; Temporary Assistance to Needy Families (TANF) and TANF work programs; Food Stamps and Food Stamp Employment and Training programs; the Employment Service (ES); unemployment insurance (UI), Trade Adjustment Assistance (TAA), and North American Free Trade Act (NAFTA) TAA; subsidized child care; and several other smaller programs. The five agencies melded within DWS were the Utah Department of Employment Security (Employment Services, UI, labor market information, and veterans' programs); the Office of Family Support (TANF, Food Stamp programs, Medicaid, and child care); the Office of Job Training (job training programs); the Office of Child Care (employed child care 162 subsidies); and Turning Point (a state program for displaced homemakers). The major workforce related entities left outside DWS were economic development, public and higher education, and vocational rehabilitation.3 The state administered system has created several notable efficiencies. The state has cut in half the number of field offices for various agencies by consolidating services in the One-Stop Employment Centers. (Currently, there are about 50 statewide.) Staffing arrangements, policies, and service procedures are consistent across the state. The state retains major accountability for performance, allowing frontline staff to concentrate more on the quality of services. The state also has greater flexibility to shift funds between substate areas, enhancing responsiveness to local needs and circumstances. Many elements of Utah’s approach reflect its business orientation and the influence of business practices on service delivery design. Utah adopted a strong business orientation for its employment and training programs decades ago that remains in place under its recent workforce reforms as well as WIA.4 Designated staff are trained to provide quality business services. The state has introduced enhanced point-of-service customer satisfaction measurement. Also, its articulated service design and franchise-like One-Stop Employment Centers provide consistent services at easily recognized DWS (“Utah’s Job Connection”) locations statewide. Utah Workforce Development Chronology, 1992-2001 1992 Utah Legislative Auditor General’s Report characterizes employment and training system as “fragmented and unresponsive to customers.” 1994 Governor Leavitt establishes the Task Force on Workforce Development. 1996 Utah enacts House Bill 375, revamping both its workforce development and its welfare programs. 1997 Utah Department of Workforce Services opens for business in July. Utah passes the Family Employment Program (FEP) Act moving programs for TANF recipients from the Utah Department of Human Services to DWS and implementing a 36-month lifetime limit on aid. 1998 Utah shifts from nine SDAs under JTPA to a single-state area in July. 1998 WIA signed into law by President Clinton in August. 1999 Utah implements WIA as one of nine early implementing states, starting with adult and dislocated worker services on July 1st and youth services on September 30th. 2001 Utah enacts the Applied Technology Governance Act in June, transferring the applied technology centers from the State Board of Education to the State Board of Regents. 163 WIA has helped Utah leaders and DWS staff to "fine tune" their comprehensive, integrated approach to workforce development services. WIA’s identification and promotion of core, intensive, and training services has been adopted across all workforce programs. The state maintains a very strong employment focus, with access to employment training based on individual assessment, counseling, and state guidelines. Utah initially adopted a "work first" or labor force attachment orientation for WIA, but has since shifted to its more balanced labor force attachment and human capital development approach. The DWS Executive Director, Governor Leavitt, and others promoted a "balanced", "flexible", or "blended" labor force attachment/human capital development approach. In part, this is driven by the governor’s firm belief—stated as one of his five guiding principles for the state in all policy areas, not just workforce development—that all Utahans should be assisted in reaching economic self-sufficiency. State and regional staff stress that individualized assessment is key to determining what individual job seekers need in terms of services and that skills acquisition is needed by many job seekers if they are to become self-sufficient, retain employment, and advance in their careers. Utah DWS does not require front-end job search, except in the TANF work program. The Family Employment Program (FEP) has an immediate placement emphasis driven by program rules and the caseload reduction credit. DWS policy also explicitly supports the provision of training for up to 24 months, if appropriate. Workforce programs and support services are parallel to, rather than integrated within, the education system and economic development efforts. The Department of Community and Economic Development and its Division of Business and Economic Development, the Utah State Office of Education (K-12), the Utah System of Higher Education, Applied Technology Education, DWS, and other agencies
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